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July 24, 2012 Presented by JoAnne Carter, Managing Director The PFM Group 4350 North Fairfax Drive, Suite 580 Arlington,

Virginia Port Authority Municipal Market Update $45,680,000* Commonwealth Port Fund Revenue Refunding Bonds, Series 2012B (Taxable) $4,720,000 * Commonwealth Port Fund Revenue Refunding Bonds, Series 2012C (Non-AMT) (*Preliminary, Subject to Change). July 24, 2012 Presented by

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July 24, 2012 Presented by JoAnne Carter, Managing Director The PFM Group 4350 North Fairfax Drive, Suite 580 Arlington,

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  1. Virginia Port AuthorityMunicipal Market Update$45,680,000*Commonwealth Port Fund Revenue Refunding Bonds, Series 2012B (Taxable)$4,720,000*Commonwealth Port Fund Revenue Refunding Bonds, Series 2012C (Non-AMT)(*Preliminary, Subject to Change) July 24, 2012 Presented by JoAnne Carter, Managing Director The PFM Group 4350 North Fairfax Drive, Suite 580 Arlington, VA 22203 www.pfm.com

  2. Taxable Interest Rates10 Year History 5.26% 10-Year Max • CPF Series 2012 • Sale Date: 1/10/12 • TIC: 3.04% • Avg Life: 8.9 yrs • NPV Savings: $13.4MM • (12.8% of refunded par) 3.99% 10-Year Average 1.45% 10-Year Min 1.49% As of 7/20/12 Source: US Department of the Treasury.

  3. Municipal Tax-Exempt Interest Rates10 Year History 5.89% 10-Year Max 4.38% 10-Year Average 4.36% As of 7/20/12 3.34% 10-Year Min Source: TM3. The 11-Bond Index consists of 11 general obligation bonds that mature in 20 years with an average rating of Moody's Aa2. Note: AMT = Alternative Minimum Tax

  4. Taxable vs. Tax-Exempt Yield Curves AAA MMD (AMT) AAA MMD US Treasury Note: Rates as of July 20, 2012.

  5. Weekly Municipal Bond Volume Source: Thomson Municipal Market Monitor, as of 7/16/2012.

  6. Overview of Commonwealth Port Fund (CPF) Bonds • Secured by 4.2% allocation from Transportation Trust Fund (TTF) and, if needed, appropriations from the TTF and a sum sufficient appropriation of the General Assembly from the General Fund • Rated Aa1/AA+/AA+ by Moody’s/Standard & Poor’s/Fitch • Moody’s has assigned a negative outlook to the CPF Bonds and similar debt in Virginia based on Commonwealth’s linkage to federal employment and procurement • $224.9 million principal outstanding as of July 1, 2012

  7. Series 2012B & 2012C Refinancing Plan Commonwealth policy sets a minimum 3% net present value savings threshold for refinancings. Preliminary, subject to change. Market conditions as of July 17, 2012.

  8. Financing Team

  9. Questions?

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